After an impressive rally of nearly 30% over the week, Chainlink [LINK] hit a fresh all-time high of $23.6 before retreating mildly. Unlike most of its peer high market cap altcoins, Chainlink found a bullish breather as the week started.
The token’s previous ATH was recorded in August 2020 when its price reached nearly $20.
Despite the correction, LINK was up by 3.41% over the past 24-hours which drove its price to $20.37. At the time of writing, the crypto-asset recorded a market cap of $8.16 billion and a 24-hour trading volume of $3.47 billion.
Chainlink [LINK] Daily Chart:
Chainlink [LINK] has roughly doubled its valuation in the first two weeks of the year as the strong bullish momentum continued. The previously converging moving averages underwent a reversal closely mimicking the price action of the token.
The gauge between the 50 DMA [Pink] and the 100 DMA [Blue] rose substantially which depicted a rising bullishness in the LINK market. The above further noted that the bulls were buying dips at very point maintaining the positive price action that has been lacking in the extended market.
Meanwhile, the Fib retracement also highlighted some crucial levels of resistance to look out for in case of LINK bulls resumes its upsurge.
Chainlink [LINK] technicals depicted a mixed picture. The MACD, for instance, continued riding the bullish wave above zero depicting a strong sense of buyers demand in the market which could further advance its price to levels not seen before.
The Stochastic RSI, on the other hand, underwent a bearish crossover as it took a plunge from the overbought zone. It also formed a bearish divergence along the way.
The RSI, however, maintained its strong hold above the 50-median line despite bouncing off from the overbought territory.
The above charts indicated that despite the strong bullish momentum, the bears appeared to be fighting for dominance. While a retracement in the short-term could very well be on the cards, the token might not undergo a damaging fall.
As depicted by Fib, Chainlink could witness a drop from its nearest support of $19.83 to $17.31. If bulls manage to retain this level, the token could witness a fresh uptrend following which LINK might very well challenge its overhead resistances of $21.15 and $23.04.
In an unlikely scenario of an increasing bearish pressure, LINK could further test support levels of$15.32, and $12.67 respectively.